Bitcoin's recent surge, climbing over 14% to briefly surpass $72,000, might suggest a recovery from the $60,000 mark. However, top traders remain cautious, refraining from placing bullish bets. Data from Binance indicates a significant drop in bullish leverage, with the Bitcoin long-to-short ratio hitting a 30-day low. This hesitance comes even as US-listed Bitcoin ETFs saw a reversal, attracting $516 million in net inflows after a period of heavy liquidations.
Over the past four days, Bitcoin has fluctuated within an 8% range, stabilizing around $69,000 following a sudden drop to $60,130. This price movement occurs amid soaring S&P 500 levels and a 20% gold price increase over two months, leaving traders puzzled about the correction’s catalysts. The market is still reeling from the 52% decline from Bitcoin's all-time high of $126,220 in October 2025, prompting top traders to adopt a cautious stance, fearing further downturns.
At Binance, the long-to-short ratio among whales and market makers fell from 1.93 to 1.20, indicating a reduction in demand for leveraged long positions. Similarly, OKX's long-to-short ratio saw a dramatic drop from 4.3 to 1.7 following a $1 billion liquidation in leveraged bullish BTC futures. This change highlights forced position closures rather than a strategic shift towards bearish expectations.
Despite this, strong interest in Bitcoin spot ETFs suggests continued bullish sentiment among large investors. Since Friday, US Bitcoin ETFs enjoyed $516 million in net inflows, reversing the earlier net outflows seen between January 27 and February 5. This influx follows a broader cross-asset margin unwind that coincided with substantial corrections in metals, like a 45% drop in silver prices.
Bitcoin's options market mirrored these trends, with a rise in neutral-to-bearish strategies after prices dipped below $72,000. The Deribit put-to-call ratio for BTC options surged to 3.1 on Thursday, showing a preference for selling, but has since eased to 1.7. This shift toward lower leverage could foster a more stable environment for future price increases.
The road ahead for Bitcoin remains uncertain, as factors like its inherent censorship resistance and strict monetary policy persist. The current low demand for Bitcoin derivatives should not be misinterpreted as a lack of confidence; rather, it signals heightened caution until market conditions clarify. Ultimately, the market awaits signs that exchanges and market makers are resilient to recent price fluctuations.